Usury

Mālik ibn Aws, the Tābi‘i, informs that he had gold dinars that he wanted to exchange with silver dirhams. Talhah ibn ‘Ubaydullāh (may Allah be pleased with him) said to him: Give us your dinars to see them. Then, after deciding to buy them, he said to him: Come later when our servant comes to give you the silver dirhams. This situation took place in the presence of ‘Umar ibn al-Khattāb (may Allah be pleased with him), who expressed his disapproval of such a transaction and swore that Talhah should either pay the silver now or give him back his gold that he took from him. He justified this by saying that the Messenger of Allah (may Allah's peace and blessings be upon him) mentioned that when selling silver for gold or vice versa, the exchange should be made immediately; otherwise, this will be a prohibited Riba-based transaction and an invalid sale. Thus, gold should not be sold for silver, and silver should not be sold for gold except hand to hand and with the exchange made on the spot. Moreover, wheat should not be sold for wheat, barley should not be sold for barley, and dates should not be sold for dates except like for like, weight for weight, measure for measure, hand to hand, and nothing thereof should be sold immediately for deferred payment, and it is impermissible for the two parties to depart before the exchange is made.

1. The types mentioned in this Hadīth are five: gold, silver, wheat, barley, and dates. If the sale involves items of the same type, then two conditions must be fulfilled to make it valid: the exchange should be made during the contract session, and they should be of the same weight, like gold for gold, or else it is Riba al-Fadl (usury of surplus). On the other hand, if the sale involves items of different types, like silver for wheat, then one condition must be fulfilled to make the contract valid, namely receiving the price during the contract session; otherwise, it is Riba an-Nasī’ah (usury of deferred payment).
2. The contract session refers to the place where the sale is conducted, whether the two parties are sitting, walking, or riding, and departing refers to what is customarily known among people as a way of ending a meeting.
3. The prohibition in this Hadīth includes all the types of gold, coined or not, and all the types of silver, coined or not.
4. What is required when selling gold for silver should be applied to the coins of this current time, i.e., if one wants to exchange one coin for another, like exchanging one riyal for one dirham, the surplus is permissible if both parties agree; however, the exchange should be made during the sale transaction or the transaction will be invalid and it will be deemed as a prohibited Riba-based transaction.
5. Riba-based transactions are impermissible, and the contract is invalid even if the two parties agree because Islam protects man's rights and the rights of society even if he waives them.
6. Forbidding and preventing evil for whoever has the ability to do so.
7. Mentioning the evidence when forbidding evil as what ‘Umar ibn al-Khattāb (may Allah be pleased with him) did.

صحيح البخاري (3/ 68) (2134). صحيح مسلم (3/ 1209) (1586). الإلمام بشرح عمدة الأحكام، لإسماعيل الأنصاري (2/ 28). تيسير العلام شرح عمدة الأحكام، لعبد الله البسام (ص496).

Abu al-Minhāl asked al-Barā’ ibn ‘Āzib and Zaid ibn Arqam (may Allah be pleased with him) about 'Sarf', which means exchanging monies or, in other words, selling the value of one for the other. At first each of them out of piety and humility referred the question to the other as being more knowledgeable and more eligible to answer it. When they answered with both of them giving the same answer which they heard from the Prophet (may Allah's peace and blessings be upon him) that he prohibited selling gold for silver on credit because they are both prone to usury. When this is the case, then it is necessary that they are exchanged on the spot in the same session before the two parties depart; otherwise, the exchange is invalid and it is considered Nasī’ah usury (usury related to deferment).

- صحيح البخاري، للإمام أبي عبد الله محمد بن إسماعيل البخاري، عناية محمد زهير الناصر، دار طوق النجاة، الطبعة الأولى، 1422هـ. - صحيح مسلم، للإمام مسلم بن الحجاج، حققه ورقمه محمد فؤاد عبد الباقي، دار عالم الكتب-الرياض، الطبعة الأولى، 1417هـ. - منحة العلام في شرح بلوغ المرام، تأليف عبد الله الفوزان، طبعة دار ابن الجوزي -الطبعة الأولى- 1428 - توضيح الأحكام شرح بلوغ المرام، تأليف عبد الله البسام، مكتبة الأسدي -مكة المكرمة- الطبعة الخامِسَة، 1423 هـ - 2003 م. - الإلمام بشرح عمدة الأحكام، للشيخ إسماعيل الأنصاري -مطبعة السعادة- الطبعة الثانية، 1392هـ. - تيسير العلام شرح عمدة الأحكام، عبد الله البسام، تحقيق محمد صبحي حسن حلاق -مكتبة الصحابة- الشارقة - الطبعة العاشرة- 1426.

Since the sale of gold for gold and silver for silver is considered usury in case they are not equivalent, it has been prohibited as long as they are not of the same weight. As for selling gold for silver or silver for gold, it is permissible even if they are of a different weight. However, the validity of the transaction requires immediate exchange during the conclusion of the sale contract; otherwise, it will be considered usury for delay, which is prohibited. This is because when the items differ in their type, the difference in weight becomes permissible on condition that exchange of the items must be immediate. This ruling applies to the items sharing a common cause of usury.

- صحيح البخاري، للإمام أبي عبد الله محمد بن إسماعيل البخاري، عناية محمد زهير الناصر، دار طوق النجاة، الطبعة الأولى، 1422هـ. - صحيح مسلم، للإمام مسلم بن الحجاج، حققه ورقمه محمد فؤاد عبد الباقي، دار عالم الكتب-الرياض، الطبعة الأولى، 1417هـ. - الإلمام بشرح عمدة الأحكام، للشيخ إسماعيل الأنصاري -مطبعة السعادة- الطبعة الثانية 1392هـ. - تيسير العلام شرح عمدة الأحكام، عبد الله البسام، تحقيق محمد صبحي حسن حلاق -مكتبة الصحابة- الشارقة، الطبعة العاشرة، 1426ه.

Bilāl came to the Prophet (may Allah's peace and blessings be upon him) with some good Burni dates. The Prophet (may Allah's peace and blessings be upon him) was surprised at their good quality and asked him: "From where did you get these dates?" Bilāl responded: "I had some other dates of less quality so I sold two Sā‘s of them for one Sā‘ of these Barni dates (in an exchange) to let the Prophet (may Allah's peace and blessings be upon him) eat from them. The Prophet was greatly disturbed by this deal and he expressed his annoyance because any form of disobedience in his sight was the greatest calamity. So he explained himself and said: "What you did Bilāl is the prohibited usury in essence. So, never do it. If you want to exchange something of bad quality, sell it first and then buy with its money something of better quality. This is the permissible way to do this kind of transaction in order to stay away from impermissible ways.

- صحيح البخاري –الجامع الصحيح-؛ للإمام أبي عبد الله محمد بن إسماعيل البخاري، عناية محمد زهير الناصر، دار طوق النجاة، الطبعة الأولى، 1422هـ. - صحيح مسلم؛ للإمام مسلم بن الحجاج، حققه ورقمه محمد فؤاد عبد الباقي، دار عالم الكتب-الرياض، الطبعة الأولى، 1417هـ. - الإلمام بشرح عمدة الأحكام للشيخ إسماعيل الأنصاري-مطبعة السعادة-الطبعة الثانية 1392ه. - تيسير العلام شرح عمدة الأحكام-عبد الله البسام-تحقيق محمد صبحي حسن حلاق- مكتبة الصحابة- الشارقة- الطبعة العاشرة- 1426ه. - خلاصة الكلام شرح عمدة الأحكام - فيصل بن عبد العزيز بن فيصل ابن حمد المبارك الحريملي النجدي - الطبعة: الثانية، 1412 هـ - 1992 م.

In this Hadīth, the Prophet (may Allah's peace and blessings be upon him) prohibited usury with its two kinds: Fadl (usury of surplus or excess) and Nasī'ah (usury of deferred payment). He prohibited selling gold for gold, whether it is minted or not, except if it is equivalent in weight and exchanged on the spot during the sale transaction, as it is not permissible to sell one that is physically present for another that is not. He also prohibited selling silver for silver, whether it is minted or not, except if it is equivalent in weight and exchanged on the spot during the sale contract. It is not permissible for one to be more than the other, nor for one of the parties involved in the transaction to depart before the exchange is made.

منحة العلَّام للشيخ عبد الله بن صالح الفوزان، ط1، دار ابن الجوزي، الدمام، 1427ه. تيسير العلام شرح عمدة الأحكام للبسام، حققه وعلق عليه وخرج أحاديثه وصنع فهارسه: محمد صبحي بن حسن حلاق، ط10، مكتبة الصحابة، الإمارات - مكتبة التابعين، القاهرة، 1426 هـ. الإلمام بشرح عمدة الأحكام لإسماعيل الأنصاري، ط1، دار الفكر، دمشق، 1381ه. صحيح البخاري، تحقيق: محمد زهير بن ناصر الناصر، ط1، دار طوق النجاة (مصورة عن السلطانية بإضافة ترقيم: محمد فؤاد عبد الباقي)، 1422ه. صحيح مسلم، تحقيق: محمد فؤاد عبد الباقي، دار إحياء التراث العربي، بيروت.

The Prophet (may Allah's peace and blessings be upon him) clarified the correct method of sale involving any of the six Riba-based classes, which are: gold, silver, wheat, barley, dates, and salt. If they are of the same type, such as selling gold for gold and silver for silver, two conditions must be fulfilled: First: Equality in weight if it is weighed, such as gold and silver, or equality in measure if it is measured, such as wheat, barley, dates, and salt. Second: The seller must receive the payment, and the buyer must take possession of the item in the same session in which the sale contract is made. If these classes differ, such as selling gold for silver or dates for wheat, then the sale is permissible with one condition: the seller must receive the payment, and the buyer must take possession of the item in the same session in which the contract is made. Otherwise, the sale is invalid, and both the buyer and the seller have fallen into forbidden Riba (usury).

1. Clarifying the Riba-based properties and how their sale should be conducted.
2. Prohibition of the Riba-based sale.
3. Banknotes take the same ruling as gold and silver regarding the legal cause of Riba.
4. Buying and selling the six Riba-based classes has several cases: 1. When a Riba-based item is sold for another of the same type, such as gold for gold or dates for dates, two conditions must be met for the transaction to be valid: equality in weight or measure, and immediate exchange in the contract session. 2. When a Riba-based item is sold for another of a different type but with the same legal cause for Riba, such as gold for silver or wheat for barley, the condition is immediate exchange without the requirement of equality. 3. When a Riba-based item is sold for another of a different type with a different legal cause, such as gold for dates, neither immediate exchange nor equality is required.
5. Buying and selling non-Riba commodities, or when one item is Riba-based and the other is not, do not require immediate exchange or equality, such as selling real estate for gold.

صحيح مسلم (3/ 1210) (1587). فيض القدير (3/ 571). البحر المحيط الثجاج في شرح صحيح الإمام مسلم بن الحجاج (27/ 623).